PENFED response to BK

[azfitz11]

Hello,

I am left with no choice but file chapter 7. I would like to keep my 2 cars with PENFED, but I will burn them on a credit card and personal loan. Will they raise my interest rates on the cars for burning them? Is it possible to not include any items I have with PENFED in the BK? 

[Scupra]

First off, love the username

You need to look into PenFed cross collatreal policy. I’m not sure what they do. Someone else may know off hand

[pizza1]

This will be tough, as a BK7 shows no mercy to anyone, and noone may be singled out,  which would show favortism to a lender.  Maybe someone else who had PF IIB will chime in.  

[azfitz11]

I'm most interested in what will happen with my 2 vehicles. Will they or can they raise the interest rate?

[tricie17]

Since everything on report is included in your filing of any chapter, it is unlikely that PenFed will let you keep any form of credit with them.  Speak with a CSR at PenFed and state that you plan on reaffirming the debt for the cars however it may be impossible since you are burning them elsewhere.  PenFed is not BK friendly.

[Anonymous]

You will be given reaffirmation agreements. This is a part of the process. A judge has to approve you keeping that debt. The judge might reject your agreement If the terms are unfavorable (loan too underwater or you can’t afford the payments based on your income).
Once you speak to an attorney he or she will explain all this to you. If you want to keep your cars make sure to keep making payments on time.

I would never give a creditor heads up about a filing. They don’t have any flexibility other than following the law after you file but if they are given advance notice pre filing there’s plenty that they can do, like close accounts and raise rates.

[Anonymous]

Oh and make sure you don’t have any money in your penn fed accounts. They will likely take that money when you file since you owe them.

[azfitz11]

Thanks for the info. Can I just give up the cars or just one? Or is that decided by the judge? I'm afraid if I keep my wifes car through Penfed, they will sinificantly increase the interest rate and I will be screwed. But I will want to keep my sons car. 

[Anonymous]

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@azfitz11wrote:

I'm most interested in what will happen with my 2 vehicles. Will they or can they raise the interest rate?

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No they can't and won't raise the interest rate on the auto loans.

[azfitz11]

Even if i'm burning them on a credit card and personal loan?

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@Anonymouswrote:

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@azfitz11wrote:

I'm most interested in what will happen with my 2 vehicles. Will they or can they raise the interest rate?

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No they can't and won't raise the interest rate on the auto loans.

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